United Parks & Resorts (PRKS) PT Raised to $46 at Mizuho

Mizuho analyst Ben Chaiken raised the price target on United Parks & Resorts (NYSE: PRKS) to $46.00 (from $44.00) while maintaining a Underperform rating.

The analyst commented: "PRKS EBITDA was worse than expected $206.3m (vs our $226m and Street $218m). Attendance (+0.8%) was within the expected range (we assumed -2% to +2%) based on the intra-quarter data; however, costs were worse than expected.

On a cash operating cost basis (rev, less EBITDA, less COGS), expenses were up 2.5% (on revenue that was down 1.5%). However, keep in mind, we believe there was $5m easy comparison vs. the prior year (which we acknowledged at the time) and also $3m of pull-forward into 1Q25. Net/net we believe costs were closer to +6% (apples to apples). This nuance is important, and overlooked by the market. A mature cost-cutting story is core to our Underperform thesis, with costs now growing faster than revenue in 4 of the last 5 quarters."

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